A multimillion-rand tender with the City of Johannesburg (COJ) – that had the capacity to be one of the excellent stories of the government’s vision to empower black women – has gone sour, and the city is being sued R8 million for now not honoring the contract.
Faithfulness Business Enterprise changed into provided a contract to supply and deliver protective footwear for contributors of the metro police branch – JMPD – valued at R23.760 million over 3 years in 2014.
Following the smooth, the company, in the end, spent thousands and thousands of rands and employed an extra group of workers to supply on its contractual duties.
However, the metropolis placed a single order for R660 000 in December 2014, after which it positioned orders with different suppliers, leaving the organization with a mountain of costs and no orders.
Two years into the agreement and a single order later, the city implemented the Johannesburg High Court in search of terminating the service stage agreement because the soft technique was unsuitable and that there have been some irregularities.
However, not one of the alleged irregularities became associated with the company or because of its influence.
The court docket dismissed the city’s application fees in February closing yr and upheld the service level settlement as binding and valid.
But the town nonetheless did no longer location any orders with the business enterprise. The enterprise took the metropolis to court to recoup its losses, which is, first of all, envisioned at R17 million, but after being audited, it amounted to R8.666 million.
In a letter of demand despatched to the town, the organization stated it had suffered damages amounting to more than R17 million in appreciate of condominium expenditure incurred in leasing premises appropriate for the garage and sorting of the reduced in size quantities of shoes; salaries, and wages of a team of workers who have been hired to ensure the capability to meet the future orders; stationery and printing prices; automobile charges, workplace equipment; and lack of income. Speaking to City Press, Selina Siganga, owner of Faithfulness Business Enterprise, stated the gentle had left her worse off and had paralyzed her enterprise.
“Because of that contract, the banks elevated the overdrafts, and now I ought to deal with them. I have needed to lay off human beings I had hired and needed to negotiate with them no longer to take me to the Commission for Conciliation, Mediation, and Arbitration due to the fact I turned into paying their salaries but no longer getting orders.
“This government always says it wants to help a black lady in commercial enterprise and desires employment [to create jobs], but it’s miles killing us,” she stated. A spokesperson for the city Nthatisi Modingoane opted now not to comment on the problem. “The count number is before the courts, and accordingly, the city will anticipate the court manner,” Modingoane said.
